Speaking to the BBC’s Newsnight programme Mr Balls said: “In the welfare state there’s always been some that are universal and some which are targeted.

“When we introduced the winter allowance we introduced it universally in a different circumstance. It’s tougher times now. I think it’s fair to say that we shouldn’t pay it to the richest five per cent [but] keep it for everyone else.

Asked whether a Labour government would keep free TV licences for pensioners Mr Balls said: “TV licences… I think you have to be pragmatic about that one to be honest.”

At 75, pensioners currently receive free television licences, worth £145.50 for colour sets.

The winter fuel payment is paid at a flat rate of up to £300, regardless of a person’s wealth. The Liberal Democrats, backed by some Conservatives, want to take it away from richer pensioners, but David Cameron has rejected any change.

According to Government figures published last month, withdrawing winter fuel payments from pensioners paying higher rates of tax would save £105 million a year.

With the Government’s annual deficit running at £120 billion a year, the Labour pledge is therefore largely symbolic.

Mr Balls also said that Labour is preparing to keep George Osborne’s spending cuts after the next election.

The shadow cabinet have been told to design policies within the overall spending limits that the Coalition will announce later this month.

He said Labour must prepare to operate within “very tough spending plans from this year's spending review”, adding: “They will be our starting point.”

“We will plan, we will expect in 2015-16 that we will inherit the current spending plans that the Chancellor sets out and we will work within them,” Mr Balls said.

“For us to come along now and say we will plan to spend more in 2015-16 would be completely irresponsible.”

Mr Balls said he could not promise to reverse the Coalition’s cuts to child benefit and hinted that further cuts to the number of Army officers and admirals in the Royal Navy could follow, as well as limits on new free schools and cuts to police commissioners.